A client of mine submitted a $1 extension payment through the IRS’ website on 16 April 2024. I’ve seen chatter from other pros that extensions filed via professional software in the days following the initial deadline are sometimes accepted by the IRS. What is the best way to verify whether a client’s extension has been accepted?
I have not heard that and I am not an expert on these things but I would think the software may say it is accepted (bad software) but IRS did not accept it. There is a case (I will try to find the case) where a tax preparer filed the return 1 minute late and the IRS labelled it late. I cant imagine they would allow a late extension to stand.
These are the way I know how to check the status of an extension, others may have other ideas
This is great Tom.
Two questions:
1. For corp/partnership returns with no business activity (i.e. no tax due), can they be filed penalty free even if they’re a few years overdue?
2. If a return is filed on time, but gets rejected, does the IRS provide a few additional days for filing without penalty?
1. No, S corps and partnership FTF penalties are not based on tax balance.
2. Yes, there is an e-file perfection period.
A client of mine submitted a $1 extension payment through the IRS’ website on 16 April 2024. I’ve seen chatter from other pros that extensions filed via professional software in the days following the initial deadline are sometimes accepted by the IRS. What is the best way to verify whether a client’s extension has been accepted?
IRS Tax Pro Account or IRS account transcript with Form 8821 or 2848
I have not heard that and I am not an expert on these things but I would think the software may say it is accepted (bad software) but IRS did not accept it. There is a case (I will try to find the case) where a tax preparer filed the return 1 minute late and the IRS labelled it late. I cant imagine they would allow a late extension to stand.
These are the way I know how to check the status of an extension, others may have other ideas
The software should give a file number
The client can go on their IRS account
You can run a transcript of client file.
Tom, Can you write something similar for estimated taxes? And is this the same for corporations?
§6651 applies to individuals and C corporations.
Partnerships as well?
No, partnerships and S corporations have separate Code provisions for failure to file. Similar but different at the same time.